Today let’s demystify the purpose of a buyer representation agreement.
A buyer representation agreement is an agreement between a buying broker and the buyer. In Quebec, this agreement is not required, and as a result, most real estate brokers don’t sign them with their purchasers. The end result is that your broker is limited in the services they can offer you.
When I’m working with a buyer, if I don’t have an agreement signed, I can only show them properties listed on Centris. If I signed an agreement saying I exclusively represent their interests in the real estate transaction, I can go far beyond those listings and deliver some truly amazing results.
“I’d highly recommend that you get your broker’s commitment to you put in writing.”
For example, I can door-knock on your behalf and find an unlisted house for sale. If I were to do that without signing a contract, I’d have to sign a contract with the seller of your home to ensure that I’m compensated. That would put me, as a broker, in a conflict of interest when it comes to whether I’m representing you or the seller. I want to avoid that at all costs.
With a buyer representation agreement signed, I can also represent you in a for-sale-by-owner transaction. Most real estate brokers in Quebec won’t even represent an FSBO property simply because they don’t have a guarantee of commission.
Purchasing a home is one of the biggest financial decisions of your life. If you don’t sign an agreement, how can you guarantee that you’ll receive any of the promotions or incentives that the broker offered to you? I’d highly recommend getting their commitment to you put in writing. For my own part, I’ll only work with buyers when that agreement has been signed. It keeps things easy and clean.
If you’re a potential buyer and don’t know where to start, feel free to attend my weekly first-time homebuyer class. It’s chock-full of great information to make the process as smooth as possible for you. If you have any other real estate questions, don’t hesitate to give me a call or send me an email. I’d love to hear from you.